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MTrading Team • 2023-04-06

Gold pares weekly gains amid risk-off mood, sluggish markets

Gold pares weekly gains amid risk-off mood, sluggish markets

Markets bear the burden of recession woes amid repeatedly downbeat US employment clues and geopolitical concerns during early Thursday. The sour sentiment, however, failed to defend the US Dollar’s recovery as yields remain pressured.

Even with the downbeat US Dollar, the Gold price prints the first daily loss after posting the Doji candlestick on Wednesday, after refreshing the yearly high. Not only Gold but Crude oil also prints mild losses by the press time, down for the second consecutive day amid fears of less demand.

Elsewhere, the NZDUSD can’t cheer upbeat China figures and drops the most among the G10 currency pairs while reversing RBNZ-inspired gains while AUDUSD also dropped amid mixed Aussie trade numbers. On the other hand, a jump in British housing prices allows GBPUSD to remain firmer while EURUSD stays sluggish despite upbeat German Industrial Production.

Moving on, USDJPY and USDCAD struggle for clear directions while USDCHF drops due to the Swiss currency’s haven status.

BTCUSD and ETHUSD print the first daily loss in four and three days respectively as sour sentiment weighs on once-favored investment options.

Following are the latest moves of the key assets:

  • Brent oil drops for the second consecutive day, down 0.15% intraday near $85.00.
  • Gold snaps three-day uptrend near the highest levels in 13 months, losing 0.17% intraday to $2,017 at the latest.
  • USD Index fades the previous day’s corrective bounce off the two-month low.
  • Wall Street again closed minor losses and so did the equities in the Asia-Pacific region. However, shares in Europe and the UK trade mixed by the press time.
  • BTCUSD and ETHUSD pare recent gains around $28,000 and $1,880 in that order.
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Mixed sentiment ahead of US NFP

Back-to-back disappointments from the US statistics raised fears of a slowdown in the world’s biggest economy, which in turn prodded the previous optimism in the market. The same initially allowed the US Dollar to recover before the dovish Fed bets gained attention and recalled the greenback bears.

The risk aversion weighs on the AUDUSD pair due to its risk-barometer status, as well as RBA’s pause, whereas NZDUSD consolidates RBNZ-led gains even as China PMI came in firmer. The reason could be linked to the US-China tussles over Taiwan, as well as North Korea’s warning to use nuclear power if US-South Korea military drills tease the hermit kingdom.

UK house prices remain firmer and join Brexit woes to underpin the GBPUSD rebound but the EURUSD struggles to cheer German data. On the same line, USD/INR also remains pressured even as RBI pauses its rate hike cycle.

Equities in Asia grind lower while the US stock futures print mild losses. Further, European and UK shares are also posting minor losses as they trace their US counterparts.

Fears that Shanghai hard fork news is already priced in joining the looming regulatory woes to prod the BTCUSD and ETHUSD buyers.

  • Strong buy: USDJPY
  • Strong sell: ETHUSD, GBPUSD
  • Buy: USD Index, USDCAD, Nasdaq, EURUSD
  • Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Canada jobs report can entertain traders

Given the mixed concerns and cautious mood, market players may pay attention to the risk catalysts amid a light calendar in the US, with only weekly jobless claims. However, Canada’s monthly employment numbers can allow traders to witness the one last round of volatility before the Good Friday holiday.

May the trading luck be with you!